Previously issued stock that a corporation purchases from shareholders is called:
A)outstanding stock.
B)authorized stock.
C)issued stock.
D)treasury stock.

Question

Quizplus · Accepted Answer

The previously issued stock that a corporation buys back from shareholders is called treasury stock. Treasury stock was once outstanding stock, but it has been reacquired by the corporation and is no longer considered outstanding. Treasury stock is sometimes held as an investment by the corporation or used for employee stock option plans or other corporate purposes. Outstanding stock refers to the shares of stock that have been issued and are currently held by shareholders. Authorized stock is the maximum number of shares of stock that a corporation is allowed to issue according to its articles of incorporation. Issued stock is the number of shares of, which the corporation has actually sold to investors.

Previously Issued Stock That a Corporation Purchases from Shareholders Is